In a pre-close statement, Computacenter has said FY13 (to end December 2013) will be “slightly ahead” of the Board's previous expectations for the year. Group revenue grew 3%, while services specifically grew 4% (all at constant currency). The fourth quarter, however, was a tougher period for services revenue, with growth of just 1%.
Country by country, financial performance is still characterised by contrast. The UK (the biggest and most mature business) saw total revenue increase 8%, with services up 6%. That 6% figure is quite a way off the 15% achieved in FY12 (see Computacenter’s placing in the 2013 infrastructure services ranking here) - however, that double-digit growth reflects particularly large gains from new business in 2011-2012. Still, 6% is a good number and the indications are that momentum in the business will be maintained; Computacenter says it has “secured some new contracts in the fourth quarter that will aid our growth from the second half of 2014”.
One notable win for the UK before year-end came in November when it was officially announced that Computacenter had signed a five-year ICT outsourcing contract with the Foreign & Commonwealth Office to support the department’s global desktop infrastructure (see Computacenter signs FCO contract. The framework contract is valued at between £65m and £350m over the period.
However, the Group’s overall business performance was held back by France and Germany. In France, services revenue fell 1% and in Germany services revenue was flat (local currency). Q4 looked particularly painful for both countries with services declines in France and Germany of 6% and 3% respectively. Much work has been done (and is being done) to elevate the performance of these businesses – and some of that means replicating the approaches taken in the UK.
Full year results will be announced on 11 March.
Computacenter features in TechMarketView’s NEW Financial Services Supplier Landscape 2013. Subcribers can read it here. If you would like to subscribe, please contact Deb Seth.